Sateri signed an investment agreement with the municipal government of Jiujiang in Jiangxi province on April 11 to expand its viscose staple fiber capacity in China by up to one million tons per year.

Sateri is currently the largest producer of viscose in China, with annual capacity in excess of 550,000 tons from its three mills in Fujian and Jiangxi provinces.

With investment of 12 billion yuan ($1.75 billion), the latest expansion in Lianxi, Jiujiang, will be executed in four phases of 250,000 tons each. Construction of the first phase is scheduled to start in the fourth quarter of this year.

Coupled with the expansion plans at its mill in Hukou, Jiujiang, the company’s total capacity in Jiujiang city is expected to exceed two million tons per year, advancing Sateri’s plans to become the world’s largest producer of viscose fiber. In Hukou, a 160,000-ton expansion is already under construction and is expected to start up in early 2018.

Sateri, managed by the Royal Golden Eagle (RGE) group, will also invest in feedstock production and work with the Jiujiang government to attract investment from spun yarn and nonwoven companies to build a complete industry chain.

Including other production bases in China and internationally, Sateri has plans to build up to three million tons of annual capacity of viscose fiber by 2025. The pace of expansion will be adjusted according to market conditions.

“We thank the Jiujiang government for their support and spirit of cooperation with Sateri as we build production facilities that will benefit the local community and all of China,” says Sateri CEO Tey Wei Lin. “As we expand our operations to become the world’s leading viscose producer, we embrace our vital role in the global supply chain for fabrics, fashion and hygiene to deliver the best fiber in the most responsible and sustainable way.”